OBOF SS & MORE PART 3

WELCOME TO OPINIONS  BASED  ON  FACTS (OBOF)

Name	Published
OVERVIEW	Dec. 28, 2010
SOCIAL SECURITY PART 1	Dec. 30, 2010
SOCIAL SECURITY PART 2	Jan. 10, 2011
SOCIAL SECURITY PART 3	Jan. 17, 2011
SOCIAL SECURITY PART 4	Jan. 24, 2011
SOCIAL SECURITY PART 5	Jan. 31, 2011
SOCIAL SECURITY PART 6	Feb. 07, 2011
SOCIAL SECURITY PART 7	Feb. 14, 2011
SPECIAL ISSUE	Feb. 18, 2011
SOCIAL SECURITY PART 8	Feb. 21, 2011
SOCIAL SECURITY PART 9	Mar. 01, 2011
SOCIAL SECURITY PART 10	Mar. 07, 2011
SS & MORE PART 1	Mar. 14, 2011
SS & MORE PART 1A	Mar. 21, 2011
SS & MORE PART 2	Mar. 25, 2011
SS & MORE PART 3	Mar. 29, 2011

SOCIAL SECURITY & MORE PART 3

AN  EYE  OPENER

In my last posting, I included a copy of an article about Senator Coburn making a speech on the floor of the Senate.  Since then, I have learned, thanks to Dr. Smith Ph.D., that the article only printed a part of his speech.  It was a part that really grabbed my attention.  However, when Dr. Smith gave me the link, which is listed below, to actually see and hear Senator Coburn's entire speech, it changed things considerably.

Reading between the lines, which is always dangerous, it seems to me that Senator Coburn is in favor of borrowing the money needed to make Social Security solvent.  If fact, he points out, as you will see and hear if you click on the link below, that the plan developed by the Debt Commission, of which he was a member,  made SS solvent for the next 75 years.

The problem is that, as things stand now, we don't have anyone ready to loan us the money.  Those who regularly loan us money are doubtful about our fiscal responsibility.  He is very articulate explaining what has happened to our credit.  At the moment, our credit card has maxed out.

I knew we were in poor condition financially, but I did not know that it is as bad as, apparently, it is.  As the article last week pointed out, Senator Coburn does lay it on the line as far as what has happened to the surplus, which coincides with what Dr. Smith and I have been saying.

If we can't get the money that is needed, then we have to have some changes to make the financial community more confident about the future financial stability of the United States.  Frankly,  I don't know where this leaves us, right now, as far as what to recommend we do next.

It will be well worth your time to see and hear Senator Coburn. He, apparently, has a different view of SS than the agenda of the Republican Party, which wants to do away with SS altogether.  When you see him I think you will be quite impressed with the sincerity of the man.

http://www.youtube.com/watch?v=WfUZ1jPKHio

Last week, I said that I might have an opportunity to meet with Senator Coburn.  I kind of doubt that that will happen.  If it did I am not sure what I would say to him that he doesn't already know.  As I said before, I think he wants the same thing  we do.  The question is how to get it.

I  ASKED  DR. SMITH Ph.D.

I have been somewhat at a loss as to what to do now, as far as repayment is concerned.  So, I asked Dr. Smith Ph.D., what his thoughts were.  As usual, he came up with the answer to my question.  It is as follows.

Floyd

I'll have to say that I agree with almost everything Senator Coburn said in that video.  That doesn't happen often when a Republican is speaking.  I think he is right that our credit worthiness is constantly being evaluated by those who buy our debt, and our fiscal behavior will affect our ability to continue to borrow at reasonable interest rates.  Long before I became concerned about Social Security, Budget Deficits and the skyrocketing National Debt were my primary economic concerns.  I began to worry about that 30 years ago when Reagan began practicing his voodoo economics.  The National Debt, which first reached the $1 trillion mark in 1981, doubled in five years, and quadrupled in 12 years. Today, it is more than $14 trillion. 

Ten years ago, I was arguing that we had to stop the looting, because there was no guarantee that  the stolen money would be repaid.  In 2004, I gave two speeches on Social Security in the Washington D.C. area,  where I raised the possibility that the government might default on its Social Security debt in the future. Other participants seemed to think I was crazy for even suggesting that the government might not honor its debt to Social Security.   

Given the extremely bleak financial condition of the federal government today, I don't believe that we can totally undo the looting of the Social Security money.  In other words, I don't think it will be possible for the government to repay all of its debt, even if there is a will to do so.  I don't believe that either the public or Congress will support any significant tax increase in the foreseeable future.  I don't think that Congress could possibly agree on massive cuts in other programs in order to free up more money for Social Security.  And I doubt that the government will be able to borrow enough money to meet all its other needs plus repay all of the Social Security money. 

My main focus is to expose the crime committed against the American people by the United States government in spending Social Security money for other programs.  I don't want to see the government get by with this without being held responsible for their fraudulent actions.  I believe that has to be the highest priority.  We must expose the looting.  Once that is accomplished, if it ever is accomplished, we can focus on remedies.  I wrote a new op-ed article today entitled, "The Great Social Security Theft." I have submitted it to the Tulsa World, but I don't know how good my chances are of having them publish it.  I will forward it to you. 

LETTER  TO  THE  EDITOR

by

DR. SMITH Ph.D.

I thought this was of real interest and might give some of us a guide line that we could follow and get some letters to the editor.

Dear David Averill,

I am initially submitting this op-ed piece exclusively to you because of the reference to Senator Tom Coburn.  I hope you will choose to publish it.  If you choose otherwise, please let me know as soon as possible, so that I can submit it to other newspapers.

Senator Coburn performed a great public service during his March 16, 2011 speech on the Senate floor.  He stated a basic truth that every other member of Congress knows, but is unwilling to admit.  I have devoted the past ten years of my life to researching and writing about Social Security funding, and trying to expose the Social Security scam.  Allan Sloan, senior editor at large at Fortune magazine, quoted me and referred to one of my books in his August 10, 2010 Washington Post column.  Once Sloan had cracked the taboo against reporting the Social Security theft, a few other journalists have also written on the subject.  Senator Coburn’s words have shed new light on the dark, dirty secret the government has been keeping from the people for the past 25 years, and I think the media needs to seize on this opportunity to let the public know what has been happening to some of their Social Security contributions for so many years.  

Sincerely,

Allen W. Smith, Ph.D.

See you next week.

Floyd

Social Security & More 2

WELCOME TO OPINIONS  BASED  ON  FACTS (OBOF)

Name	Published
OVERVIEW	Dec. 28, 2010
SOCIAL SECURITY PART 1	Dec. 30, 2010
SOCIAL SECURITY PART 2	Jan. 10, 2011
SOCIAL SECURITY PART 3	Jan. 17, 2011
SOCIAL SECURITY PART 4	Jan. 24, 2011
SOCIAL SECURITY PART 5	Jan. 31, 2011
SOCIAL SECURITY PART 6	Feb. 07, 2011
SOCIAL SECURITY PART 7	Feb. 14, 2011
SPECIAL ISSUE	Feb. 18, 2011
SOCIAL SECURITY PART 8	Feb. 21, 2011
SOCIAL SECURITY PART 9	Mar. 01, 2011
SOCIAL SECURITY PART 10	Mar. 07, 2011
SS & MORE PART 1	Mar. 14, 2011
SS & MORE PART 1A	Mar. 21, 2011
SS & MORE PART 2	Mar. 25, 2011

SOCIAL SECURITY & MORE PART 2

BETTER LATE THAN NEVER - I HOPE

Well, I have put this off so long that I guess I should have just said we'll skip this week.  However, it is finally here even though I missed my first extension.  Later, I will explain the reason.

THIS IS A FIRST

To my knowledge, this is the first time this has happened on the U. S. Senate floor.  On Wednesday the 16th. Senator Tom Coburn spoke, on the floor of the Senate, about Social Security.  When you read about his statements, you will see why I say, it is the first time these words, about Social Security, have been spoken on the Senate floor.  They are so good.

Oklahoma U.S. Sen. Tom Coburn debates need for Social Security reform

Sen. Tom Coburn speaks against proposal to shield Social Security from changes.

BY CHRIS CASTEEL Oklahoman    0

Published: March 17, 2011

WASHINGTON — Sen. Tom Coburn warned Wednesday that Social Security’s future depends on the federal government’s ability to borrow money and said changes should be made soon to ensure in the long term that all benefits can be paid.

In a speech on the Senate floor, Coburn said the $2.6 trillion Social Security trust fund holds only IOUs from the federal Treasury. Congresses and administrations, involving both Republicans and Democrats, he said, have “stolen money from Social Security and spent it.”

“The money’s gone,” said Coburn, R-Muskogee. “It’s been used for another purpose.”

For the Social Security system to get the $2.6 trillion owed by the Treasury, he said, the government will have to borrow money.

“If we’re not able to borrow the $2.6 trillion, the benefits won’t be there,” he said.

Coburn, who was part of the president’s deficit commission that last year recommended raising the retirement age and cutting benefits to the wealthy, was  on the Senate floor Wednesday to respond to a proposal by Sen. Bernie Sanders, a Vermont independent, who wants to shield Social Security from any deficit reduction plans.

Sanders has introduced legislation that would require two-thirds of the Senate — rather than a simple majority — to approve any changes to the program.

Sanders said Wednesday the trust fund would allow all Social Security benefits to be paid out for the next 26 years. He dismissed Coburn’s concerns about borrowing, saying the U.S. government has never defaulted on its debt obligations.

Social Security, he said, is “the most successful and reliable program in our nation’s history.”

Coburn said no one was talking about cutting benefits to anyone but the very rich. However, Sanders and many others consider increases in the retirement age as benefit cuts.

“What we have to do is to make sure Social Security is viable for the future,” Coburn said.

The word "stolen" is the one BIG thing that is a first.  I put in the underline on "stolen," it wasn't in the original article.  I think that the entire statement is a first.  I believe that most legislators know the truth about SS, but do not want to say it.  Senator Coburn has had enough sincerity about him, to say it right on the Senate floor.  He has told it like it is, while others skirt all around it.

NOW THE REASON FOR THE DELAY IN THIS POSTING

After reading this article about Senator Coburn, which incidentally is my Senator, Dr. Smith and I talked and decided to see if we couldn't talk to the Senator more about our viewpoint.  To start with, I have an appointment with one of Senator Coburn's staff, a Mr. Dan Hourigan, on Thursday morning the 24th. for further discussion.  Hopefully it might lead to a meeting with the Senator.  I am not going to finish this posting until after meeting with Mr. Hourigan. 

WHAT  A  MEETING !

It is now the evening of the 24th. and I can report about the meeting I had with Mr. Hourigan, better known as Dan.  I just have to tell you at the beginning, this is one very impressive young man.  He is a "Field Representative" for Senator Colburn.  He spends most of his time, as you might expect, in the field talking with people to see what is on their mind and then reports to the Senator.

 

When our meeting was over, I couldn't believe that we had talked for an hour.  He was so receptive and encouraging for me to tell him what I had on my mind.  I had not intended to take that much of his time. 

I first mentioned about the statements Senator Coburn made on the floor of the Senate on the 16th and that it was the spark that brought me to contact his office.  I told him about Dr. Allen Smith Ph.D. and what he had been doing for the past 10 years.  If you have read any of my previous postings, you know what I said to him.  I did emphasize, that SS was not an entitlement program and that instead, it is an insurance program that is self supporting by those who are insured.     

We talked about the problems with the solvency of SS and what brought it to this point starting with the upgrading of FICA in 1983.  This lead into my thoughts as to the solution for the future up to 2037 and the need for another detailed study of the future in 2027.  That would give a 10 year period to work out adjustments that might be needed after 2037.  The solution amounts to the Government borrowing, from the Public Market, the amount needed to redeem the Special Government Bonds in the Trust Fund (IOUs) and the Congress must adhere to the Budget Enforcement Act of 1990 and not use FICA as General Revenue.  Doing this the following would occur.

         

          1.  Sufficient funds in SS to met needs till 2037.

          2.  No need for any adjustments until 2027

          3.  No more talk about SS contributing to the deficit.

          4.  No increase in the total National Debt.

I did notice, during my talking, that Dan did write a lot of notes.  That alone told me that what I was saying wasn't just going in one ear and out the other.  If Dan is reading this, I want to publicly thank you so much for the opportunity to talk with you.  From my viewpoint it was not only productive with regard to my concerns, but it was truly enjoyable.

HOW  ABOUT  THOSE  GAS  PRICES

On another front, a little information of interest about gas prices.  I have been looking at why our gas prices should be going up so much.  The conventional wisdom is that the problems in Libya.  Supposedly they produce so much oil and there oil shipments have been interrupted.  JUST NOT TRUE.

 

Oh yes, there shipments have been interrupted, BUT, number one, we don't get any oil from Libya.  Number two, and rightly so, it is pointed out that even though we don't get any oil from Libya, oil is a global commodity and any interruption anywhere can be felt world wide.  Number three, Libya only produces 2% of the world's oil, so it can't have this much effect on gas prices.

 

Well, if that is the case what is causing this price rise.  SECULATION, that's the problem, but it should not be.  Why? Because, the new regulations would control this speculation, but is isn't, why?  The new regulations were suppose to  go into effect Jan. 1, 2011, but they did not go into effect, why? Lots of questions. 

There are two answers to the questions.  First, I must admit that I was negligent in not getting names involved in this answer or what CFTC stands for; it is the regulation commission, but that is all I know.  

The members of this commission are appointed by the President.  First,  there is one member whose term expires in a very short time and he is one of the reasons the new regulations have not been installed.  Hopefully, the President will appoint someone to replace him, that will be more progressive.  Second, apparently, the Republicans in the House, are holding up funding for the enforcement of these new regulations.  These are the real reasons your gas prices are going up.  Not because of Libya.  I thought this was kind of interesting.  Once again, we see The Republican Party's agenda "sticking it to the working and middle class."

NOT  ANOTHER  WAR ?

Just a couple of personal thoughts.  I can't believe that here we are in another war that we have no business being in. This is the third war and we can't afford it, either in terms of American lives, if it comes to that, or money. The President has said that we will be in it for only a matter of days, not weeks or months.

I am a strong supporter of President Obama, but if he doesn't stick to that statement about days only, the effectiveness of his Presidency is over and he can forget about 2012.

AFFORDABLE  CARE  ACT

States Put Own Spin on Obama Healthcare Law
CHICAGO— Rancor over President Barack Obama's healthcare overhaul has largely overshadowed some states' efforts to use the law to help them move as fast as possible to insure more people and increase control over insurance companies.

Minnesota, Connecticut, and Washington, D.C., have leveraged more federal dollars to expand coverage of childless adults. Vermont is exploring a single-payer healthcare system that would phase out most private insurance, a strategy rejected by Congress as too radical for the rest of the nation. Oregon is focusing on preventive care and providing proven treatments.

ENOUGH  IS ENOUGH

I want to sincerely apologize for the delay this week.  I think it was worth the wait.  Next week, I will be posting on Tuesday and the week after that I'll be back on schedule on Monday. 

See you next week.

Floyd

SOCIAL SECURITY & MORE 1A

WELCOME TO OPINIONS  BASED  ON  FACTS (OBOF)

Name	Published
OVERVIEW	Dec. 28, 2010
SOCIAL SECURITY PART 1	Dec. 30, 2010
SOCIAL SECURITY PART 2	Jan. 10, 2011
SOCIAL SECURITY PART 3	Jan. 17, 2011
SOCIAL SECURITY PART 4	Jan. 24, 2011
SOCIAL SECURITY PART 5	Jan. 31, 2011
SOCIAL SECURITY PART 6	Feb. 07, 2011
SOCIAL SECURITY PART 7	Feb. 14, 2011
SPECIAL ISSUE	Feb. 18, 2011
SOCIAL SECURITY PART 8	Feb. 21, 2011
SOCIAL SECURITY PART 9	Mar. 01, 2011
SOCIAL SECURITY PART 10	Mar. 07, 2011
SS & MORE PART 1	Mar. 14, 2011
SS & MORE PART 1A	Mar. 21, 2011

SOCIAL SECURITY & MORE PART 1A

The regular Monday posting for this week will not be posted until Wednesday the 23rd.  I'm hoping it will be worth the wait. 

See you Wednesday.

Floyd